Corporation Tax Act 2009 section 1217K

Theatre tax credit claimable if company has surrenderable loss

Section 1217K allows a theatrical production company that has a surrenderable loss to claim a theatre tax credit by surrendering all or part of that loss, with the credit rate depending on whether the production is a touring or non-touring production.

• A theatrical production company with a surrenderable loss in an accounting period may claim a theatre tax credit for that period by surrendering all or part of the loss.
• The credit is 45% of the surrendered loss for touring productions and 40% for non-touring productions.
• A production qualifies as "touring" if the company intends, at the start of the production phase, to perform in six or more separate premises, or in at least two separate premises with at least 14 performances.
• The company's available loss for the period is reduced by the amount surrendered.